DECISION SUPPORT SYSTEM
What is a decision support system?
Decision support systems (DSS) are interactive technology-based systems that use statistical data for solutions in which its purpose is to help managers and operation planners in decision-making create a systematized strategy to implement efficient and organized solutions by accessing and huge chunks and varieties of information gathered from different types of affiliated information involved in business processes like office automation system, transaction processing system, and many more.
A decision support system aids in a company’s decision-making process but does not exactly present a decision itself. The decision makers get vital information from raw data, business models, documents, and/or personal knowledge to describe and deal with problems and generate decisions. The diverse and mixed option is most efficient as computers only proceed through functional parameters. High amount of optimization through a computer in coordination with human direction is desirable.
TYPES OF DECISION SUPPORT SYSTEMS:
· Communication-driven Its purpose is to help in the conduction of meetings, or for user collaborations. Examples are chats and instant messaging software, online collaboration and online meeting systems.
· Data-driven It is used for querying databases or data warehouses to look for accurate answers for specifically defined purposes. It is launched via mainframe system, client/server link, or through the web. Examples are computer-based databases that have a query system to check the integration of data used for adding value to existing databases.
· Document-driven The purpose of a document-driven DSS is to search and filter through web pages and seek documents and files from an identified set of keywords or search terms. The usual approach used to set up such DSSs are through the world wide web or using a client/server system. Examples of documents that may be accessed by document-driven decision support systems are policies, procedures, product specifications, catalogs, and corporate documents like minutes of meetings, corporate records, and important correspondence.
· Knowledge-driven Knowledge-driven DSSs or 'knowledge-based' as they are more commonly known, are known to cover a broad selection of systems covering users within the organization setting it up, but may also include others having interactions with the organization like consumers of a certain business. It is vitally used in providing advice on management or choosing products and/or services. Examples of these are scheduling systems, customer support systems, and insurance plan selection systems.
· Model-driven Model-driven DSSs are complex systems that focus on accessing and manipulation of models and help deconstruct decisions or choose between varieties of options. Examples are accessing and manipulating statistical, financial, optimization and/or simulation models. Airlines use decision support systems to show travel trends and to deploy cost reduction.
Other types include spreadsheet-based decision support systems and web-based decision support systems. While spreadsheet-based decision support systems are a combination of data-driven and model-driven decision support systems, a web-based decision support system uses a thin-client web browser to deliver information to the manager or business analyst.
Who uses decision support systems?
Decision support systems are usually used in government, companies, hospitals, and schools by a group of decision makers basically to help in the compilation of information to make an informed decision regarding changes in policy, implementation and so forth. For example, Lockheed Martin is famous for developing the SR-71 Blackbird, an airplane that can go as fast as 2000 mph while (barely) remaining in Earth's atmosphere. They started all the way back in the 1970s. In the eighties, Wells Fargo and AT&T also jumped on the DSS bandwagon — of course, decision support systems at that time only had access to kilobytes and maybe megabytes; not terabytes and petabytes.
Where are decision support systems commonly used?
Decision support systems are widely used in organizations as well as military all over the world. It helps the decision makers apply different techniques in decision making such as analytical, statistical as well as scientific and the popularity has increased because of the ability to execute, interpret, analyze and suggest.
DSS can be used in different areas such as economic forecasting, risk management, manufacturing automation, supply chain management, healthcare, data warehousing, demographic trends and forecast, resource allocation and many more because of their capability in helping the decision makers balancing conflicting objectives and allocating scarce resource optimally, the population has been growing in recent years, with the help of collaboration of the employees such as the programmers, analyst, decision makers, finance specialist and the end users.
How are decision support systems built?
Decision support systems are used in a way that is easy to understand. It is also programmed to generate different kinds of reports or information based on the user specification and it will output it graphically by the use of bar chart which represents as a written report.
Why are decision support systems important?
(1) Decision support systems give a company time savings. The time consumed in making a decision is lessened, therefore giving employees more timely information for decision making and increasing employee productivity.
(2) Decision support systems enhance effectiveness. Decision-making effectiveness is improved and results in better decisions.
(3) Decision support systems improve interpersonal communication. Communication and collaboration are important core competencies that improve as the opinions of other employees are needed regarding the system and the decision must be based on facts.
(4) Decision support systems give employees a competitive advantage. The use of decision support systems in a company likely improves the competitiveness from technology-based decision support. (5) Decision support systems enhance cost reduction. There is a cost reduction for DSS as it saves labor in decision-making, and it also came from lower infrastructure technology cost.
(6) Decision support systems increase decision maker satisfaction. Creating perception leads to better information and it lessens frustration and disappointment for the decision makers.
(7) Decision support systems promote learning. It aids in the learning and development of new concepts and better understanding of the business as it also improves decision making.
(8) Decision support systems increase organizational control. Since decision support systems are arranged in models, the management understanding towards business operation and managers are greatly enhanced.
When are decision support systems used?
A decision support system is used when trying to make a company decision. It is also used in trying to look for solutions, sorting them and checking for alternatives.
Researchers :
Cruz, Trisha Jade
Sangalang, Alberto
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